Introduction:
Life insurance is something every American citizen without a form of income should have. But with life insurance being a staple that protects your family in case of the worst, it can be tricky to figure out who buys the most life insurance in your age group. If you're in any sort of financial planning, then you'll be well aware of the importance of life insurance. And while we all subjectively think that our own families need as much life insurance as possible, the fact is that age plays a big part.
Life insurance can protect the future of your family and loved ones. The key to finding the right policy is to determine how much coverage you need and where you can get a quote. As the old saying goes, “you are what you eat.” So, you might be wondering why your grandmother always said that... but the food is a good starting point.
Boomers buy the most life insurance
The average age of life insurance buyers is 63.6 years old. The average age of a boomer is 61.8 years old, according to data from the Insurance Information Institute. The oldest group of Americans buying life insurance is seniors aged 75 and older, who account for almost half (49%) of all buyers.
Seniors are also more likely than any other age group to buy term life insurance, which provides a payout when you die within a specified period after your policy expires. In fact, seniors aged 65 and older purchase nearly 51% of all term-life policies purchased in the United States each year -- but only about 4% of whole-life policies purchased during this same time period (see table).
Boomers are the ones who buy the most life insurance. They're also the most likely to die.
The data comes from a recent study by the National Association of Insurance Commissioners (NAIC), which found that 32 percent of all U.S. households have at least one member who has purchased life insurance policies since they turned 65. More than half of those households were led by boomers (ages 55 to 64).
The study also found that women are more likely than men to purchase life insurance and that younger people tend to buy less coverage than older folks do.
Gen Xers are in second place
Gen Xers are in second place, with 49% of them buying life insurance. This is a significant increase from the 34% who bought life insurance when they were 20-39 years old.
Millennials are third with 44%, and Boomers are fourth with 38%.
Gen Xers are in second place, followed by millennials.
The data comes from a survey of 2,000 adults conducted by the American Association of Life Insurance (AALI) and commissioned by AALI's Life Insurance Research Institute (LIRI). The survey also asked respondents about their life insurance needs, as well as their personal values and beliefs about risk.
The results show that Gen Xers are most likely to buy life insurance at age 50 (19 percent), followed by millennials at age 25 (14 percent). Baby boomers are least likely to purchase life insurance at any age -- just 6 percent of them do so between ages 50 and 64.
Gen Xers are in second place, with the oldest group being the Baby Boomers.
The average life insurance policy is $140,000 and the median amount is $100,000. The highest amount of coverage was $375,000 and the lowest was $50,000.
Gen Xers are more likely to have an employer-sponsored policy than any other age group (52 percent). They also tend to purchase more expensive policies when they do get one themselves.
The most common reasons people buy life insurance are:
To cover dependents in case of death (49 percent)
To help defray funeral expenses if a loved one dies (46 percent)
To provide financial security for surviving spouse/partner/child (27 percent).
Millennials are in third place
Millennials are in third place. The survey found that the average millennial has $58,000 in life insurance coverage, compared with $115,000 for Gen Xers and $145,000 for baby boomers.
The survey also asked respondents what age group they thought would buy the most life insurance. Millennials were ranked No. 3, behind boomers and Gen Xers (who were listed separately).
"It's interesting that millennials are buying less than other generations," said John Gormley, vice president of marketing at Lockton Affinity Group. "But they still make up a significant portion of our business." Millennials are in the third place when it comes to buying life insurance. But they're not the only ones who are thinking about it.
The age group that buys the most life insurance is actually retirees.
The data comes from a recent report by LendingTree, which found that of all Americans who have purchased life insurance in the last year, retirees have been the most likely to do so. In fact, 43% of people who bought life insurance last year were over 65 years old -- compared with just 27% of those who were under 35 years old.
And while millennials are third overall when it comes to buying life insurance, they still made up a big chunk of last year's purchases: 38% of young adults who bought coverage were between 18 and 34 years old.
Millennials are in third place for life insurance purchases. They makeup 17% of the population but only account for 14% of all life insurance policies purchased. Millennials are also less likely than other age groups to buy whole life insurance or variable universal life insurance.
The Baby Boomers are the most likely to buy life insurance, with nearly half (48%) having done so in the last five years. They're followed by Gen Xers at 34%, then Generation Y at 24%. The Silent Generation is the least likely to purchase life insurance -- just 16% have done so in their lifetime.
Baby Boomers
Baby Boomers are the most likely to buy life insurance. They have more children and grandchildren, and they tend to be wealthier than other generations. Baby Boomers are also more likely to believe that they'll outlive their peers. And because of this, many Baby Boomers are buying life insurance policies in order to ensure that their loved ones will be taken care of if something happens to them.
A study by Aon Hewitt found that 61 percent of Baby Boomers were buying life insurance policies for themselves or family members. Another study by Aon Hewitt found that 79 percent of people aged 55-64 were buying long-term care insurance policies. Baby Boomers are the largest generation in U.S. history, and they're also buying more life insurance than any other age group.
The average life insurance policy for a Baby Boomer is $134,000, according to data from the National Association of Insurance Commissioners' annual Life Insurance Report Card on Individual Life Insurance Policyholders. That's more than double the amount of coverage purchased by Generation X-ers (who buy on average $62,000) and more than triple that of Millennials ($26,000).
The report found that 55% of Baby Boomers buy individual life insurance policies, compared with 28% of Generation X-ers and 11% of Millennials.
"The average purchase amount is higher because they're spending more money now," says Robert Jankovich, chief underwriter at State Farm Mutual Automobile Insurance Company in Des Moines, Iowa. "They have more assets and income."
Baby Boomers are the group most likely to buy life insurance, according to a study by the National Association of Insurance Commissioners.
The group is expected to spend $9 billion on life insurance in 2011, which is up from $8 billion in 2010. According to the NALC, this increase is largely due to increased spending by Baby Boomers who are nearing retirement age and have started planning for their financial future.
In fact, more than half (54%) of those surveyed by NALC said that they had bought or renewed their life insurance policies during the past year.
Baby Boomers are also more likely than other generations to use cash instead of stocks or bonds when buying an investment portfolio -- another key consideration when purchasing life insurance.
Generation Z
Generation Z is the first generation to have grown up with the internet and social media. They are also the most connected generation, with more than half of them online constantly.
Generation Z is a diverse group of people, but one thing that unites them is their desire for financial freedom. They believe that their money should be able to support them throughout their lives and not just when they are older.
If you are looking for a way to protect your family's future, then life insurance may be right for you!
Generation Z is the first generation that grew up with social media, smartphones, and the internet. They are also the least likely to have a job or be actively looking for one. Generation Z is often referred to as "digital natives" because they were born into a digital world.
Generation Z has been called the "i-generation" because they grew up with technology and have always used it in their daily lives (i).
The average age of Generation Z is 16 years old (ii). This means that even if you are not buying life insurance for your child, you should consider getting it for yourself or your spouse as soon as possible.
Generation Z is the largest generation in history. They are currently making up 25% of the population and will continue to grow until 2050. The reason for this is that Generation Z has been growing up with technology since they were young children. This means that their expectations have changed and they are now seeking more financial security than ever before.
Generation Z has always been tech-savvy, but now they are also looking for ways to make their money go further. This means that they will be shopping around for life insurance policies at younger ages than previous generations did when they were starting out their careers or raising families.
According to a study by the National Association of Insurance Commissioners (NAIC), Generation Z bought more life insurance than any other age group between the ages of 16 and 30 years old.
Between ages 25 and 40
The age group between 25 and 40 is the one that buys the most life insurance. This isn't surprising. It's often difficult to get a good job at this age, so many people are forced to take out loans or go into debt just to pay for basic expenses like rent, food, and clothing.
They may also have children at home who need their support, which means they'll need life insurance in case something happens to one of them. Life insurance can help cover the cost of these expenses if you should die unexpectedly before reaching retirement age.
One of the most important things to consider when buying life insurance is your age. The older you are, the more likely it is that you'll need coverage for your family or yourself.
The age group that buys the most life insurance is between 25 and 40 years old. This group is also the most likely to have a mortgage, so they're looking for a way to protect their families if something happened to them
The second-most likely age group to buy life insurance is between ages 40 and 55. This group has been saving for retirement for several decades and has accumulated enough money for retirement needs, but they may still need some extra protection in case something happens unexpectedly
The third-most likely age group to buy life insurance is between ages 55 and 64. This group has been saving for retirement for several decades, but it's possible that they could need an extra source of income if something happened unexpectedly.
Under age 25
The under-25 crowd is the most likely to buy life insurance.
The younger you are when you make your first policy purchase, the more likely it is that you'll have an effective term policy in place. This means that if something happens to you while you're young, your family will still be able to collect on it -- even if they don't have another source of income after supporting themselves through college or graduate school.
If you're 25 or older but still haven't bought any life insurance yet, here are five reasons why now might be the best time for you:
The age group most likely to purchase life insurance is under 25.
The rate of death among young people is high, and it's not because they're reckless or stupid. It's because they're more vulnerable to diseases such as cancer, heart disease, and other conditions that can kill them at any age.
In fact, the Centers for Disease Control and Prevention (CDC) estimates that about 20 percent of all Americans will die from an illness or injury before age 75. That means that nearly 4 out of 5 Americans who live past 75 will die from an illness or injury before their 75th birthday.
Conclusion:
Age distributions for life insurance purchases look about the same for men and women up to about age 50. From there, men tend to buy more frequently than women. These findings for 2011 may have changed in the years that have passed, of course, but it does serve as a valuable reference point for those who are considering purchasing life insurance.
Baby boomers still make up the largest segment of life insurance buyers, but millennials are buying more policies than ever before, and have the highest overall percentage of ownership. What's more, there is a growing awareness among millennials that life insurance is an important buy for them, with 83% saying that they know it is something important to own.
It's never too late to get life insurance if you can afford it, but it's certainly a big purchase. Be sure to take into account each of the variables listed above and you should be able to find a plan that fits your current needs—whether you're twenty or eighty.
0 Comments